Appeals Court Rejects Minority-contracting Law

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September 4, 1997

SAN FRANCISCO — A federal appeals court ruled Wednesday that a California law requiring contractors on public works projects to share part of the work with businesses owned by women and minorities was unconstitutional. The 9th U.S. Circuit Court of Appeals held that California's public contract ethnic and gender set-aside statute violates the equal protection clause of the U.S. Constitution. The affirmative-action statute required that general contractors on public works projects subcontract 23 percent of the dollar amount of work to business enterprises of women, minorities or disabled veterans.